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July 31, 2014

Homework Help: Macroeconomics

Posted by Macro_Econo on Friday, February 29, 2008 at 10:26am.

Can someone please help me with this?
Since fall of 2004, rising oil prices have frequently ended stock market rallies and led to declines in all major stock indexes. Draw an AS/AD diagram which shows the effect on the US macroeconomy of oil at a high price such as $100 per barrel versus oil at a moderate price such as $50 per barrel. Label axes and AS/AD lines on your diagram clearly and explain how higher oil prices impact either AS, AD or both

Thanks.

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